Hemisphere Energy Corporation announced it recently completed its 2023 summer drilling program in the Atlee Buffalo area. Eight wells were drilled with six wells planned as producers, one well designated as an injector, and one well to be produced for several months before being converted into an injector. All producing wells are now on production, with the final two wells having just been tied in during the last week of September.

Including the new wells, September corporate production to date has averaged over 3,200 boe/d (99% heavy oil, based on field estimates between September 1-26, 2023). With the completion of the 2023 drilling program, Hemisphere's capital expenditures are expected to be minimal for the remainder of the year, with focus on optimization of production and injector start-up, as well as preparation of the Company's 2024 development program. It has been approximately two years since Hemisphere commenced its first enhanced oil recovery project (polymer flood) to maximize recovery from its conventional oil pools in the Atlee Buffalo area.

The use of polymer flood has helped to arrest the decline of Hemisphere's base production, and at times has provided actual growth in base production levels from wells that were drilled up to almost 10 years ago. The Company's total production comes from less than 50 producing wells, giving an average of approximately 65 bbl/d per well, with approximately 40 of those producing wells under enhanced oil recovery polymer flood. Hemisphere's operations deliver excellent free cash flow due to ultra-low decline rates provided by polymer flood operations, low operating expenses, low capital-intensive assets, long life reserves, and minimal decommissioning liabilities and inactive assets.